errorEN16931
BR-AG-10:IPSI VAT breakdown must NOT have exemption reason
An IPSI VAT breakdown must NOT have a VAT exemption reason code or text. IPSI is a positive tax (like standard VAT), so exemption reasons are not applicable.
We can fix this automatically
AUTO-FIX1. Set appropriate VATEX code for category (E→VATEX-EU-*, G→VATEX-EU-G, etc.). 2. Or set exemption reason text.
No manual changes needed
Upload and Fix NowWhy This Error Matters
Invoice will be rejected. IPSI (Ceuta/Melilla indirect tax) transactions must follow specific rules for Spanish territory tax compliance.
How to Fix It
1
Locate IPSI VAT breakdown
2
Check for exemption reason
3
Remove exemption reason code
4
Remove exemption reason text
5
Validate the result
Technical Details
XPath: /Invoice/cac:TaxTotal/cac:TaxSubtotal/cac:TaxCategory[cbc:ID="M"]/cbc:TaxExemptionReasonCode (BT-121) and /cbc:TaxExemptionReason (BT-120). IPSI (category M) is the Ceuta and Melilla indirect tax. It is a positive tax rate, so exemption reasons do not apply.Common Causes
- IPSI breakdown includes exemption reason (not allowed)
- TaxExemptionReason added to non-exempt IPSI category
- Template includes exemption fields for all tax categories
- Export incorrectly added exemption text to IPSI
- Copy from exempt category included reason fields
Frequently Asked Questions
An IPSI VAT breakdown must NOT have a VAT exemption reason code or text. IPSI is a positive tax (like standard VAT), so exemption reasons are not applicable.
Remove VAT exemption reason code (BT-121) and exemption text (BT-120) from the IPSI VAT breakdown. You can also use Invoice Navigator's automatic Fixer tool to correct this instantly.
Yes, BR-AG-10 is a critical error that will cause invoice rejection. It must be fixed before submission to ensure your invoice is accepted.
Many instances of BR-AG-10 can be automatically corrected using Invoice Navigator's Fixer tool. Upload your invoice and the tool will identify and fix common issues.
See Also
Last updated: 16 January 2026
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